Pembridge Resources (LSE:PERE)
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From Jun 2019 to Jun 2020
By Anthony O. Goriainoff
Pembridge Resources PLC (PERE.LN) said Friday that is has entered into an amendment agreement between subsidiary Minto Explorations Ltd. and Wheaton Precious Metals Corp. (WPM.T), which could benefit Minto's revenue by up to $8.5 million.
The U.K. mining company said that it has agreed to an amendment of the precious-metals streaming agreement, whereby the price received by Minto from Wheaton for payable gold will increase to 75% of the market price during the modified price period.
Pembridge said that the modified gold price is effective immediately and will end either 12 months plus 60 days from the first delivery, or after the first 11,000 ounces of payable gold have been delivered to Wheaton. At the end of the modified-price period, payable gold will return to being priced as per the existing agreement, the company said.
The company said the modified price period won't alter the price of silver produced by Minto.
"The support from Wheaton should significantly assist Minto's cash flow as the Minto mine ramps up production," Chief Executive Officer Gati Al-Jebouri said.
Shares at 1430 GMT were unchanged at 12.75 pence.
Write to Anthony O. Goriainoff at email@example.com
(END) Dow Jones Newswires
November 08, 2019 10:21 ET (15:21 GMT)
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